Insperity (NYSE:NSP) Releases Earnings Results, Beats Expectations By $0.01 EPS

Insperity (NYSE:NSP) announced its quarterly earnings results on Thursday. The business services provider reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.21 by $0.01, FiscalAI reports. The firm had revenue of $1.65 billion during the quarter, compared to analysts’ expectations of $1.64 billion. Insperity had a negative net margin of 0.23% and a negative return on equity of 19.99%. The company’s revenue for the quarter was up 1.7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.20) earnings per share.

Here are the key takeaways from Insperity’s conference call:

• Margin recovery is gaining traction: Q3 gross profit per worksite employee rose 8% year over year, adjusted EPS improved to $0.22 from a $0.20 loss, and adjusted EBITDA increased 210% to $31 million. Operating expenses declined 5% due primarily to lower staffing and compensation costs.
• The margin strategy continues to weigh on growth, with average paid worksite employees down 1.8% in Q3 and expected to decline 1.4%-2.0% year over year in Q4. Management said new sales and client attrition are likely to largely offset each other in the fourth quarter, while the fall campaign remains too early to assess.
• Management raised confidence in the earnings trajectory, forecasting full-year 2026 adjusted EBITDA of $194 million-$214 million, up 48%-63%, and adjusted EPS of $1.93-$2.28, up 87%-121%. The company expects additional gross-profit improvement in Q4 from pricing actions and a more favorable client mix.
• Benefits costs increased 3.7% per covered employee, while workers’ compensation results faced higher reported costs and fewer favorable reserve adjustments. Executives cited elevated healthcare costs and increasing claim severity as market pressures that could persist, requiring continued pricing actions.
• Insperity is positioning AI as a long-term growth opportunity through its proprietary tools, the HR360 AI Agent, and its Workday partnership. Management believes AI-driven workplace changes could increase demand for HR expertise, but acknowledged that the commercial impact and client adoption timeline remain uncertain.

Insperity Stock Up 6.3%

Shares of NSP stock traded up $2.94 during mid-day trading on Friday, hitting $49.23. 384,280 shares of the stock traded hands, compared to its average volume of 806,660. Insperity has a 52-week low of $18.57 and a 52-week high of $55.90. The company has a debt-to-equity ratio of 6.87, a current ratio of 1.11 and a quick ratio of 1.11. The stock has a market cap of $1.88 billion, a P/E ratio of -114.42 and a beta of 0.54. The stock’s fifty day moving average is $50.20 and its two-hundred day moving average is $39.64.

Insperity Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Wednesday, September 2nd were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 4.9%. The ex-dividend date was Wednesday, September 2nd. Insperity’s dividend payout ratio is presently -558.14%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on NSP shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of Insperity in a research note on Tuesday, October 13th. Zacks Research upgraded shares of Insperity from a “strong sell” rating to a “hold” rating in a research note on Wednesday, July 29th. Robert W. Baird set a $56.00 target price on Insperity in a research note on Friday, July 31st. Roth Capital set a $61.00 price objective on Insperity in a report on Friday, July 31st. Finally, Truist Financial set a $52.00 price target on shares of Insperity and gave the stock a “hold” rating in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Insperity presently has an average rating of “Reduce” and a consensus price target of $53.33.

Key Stories Impacting Insperity

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Q3 adjusted earnings and revenue exceeded expectations. Insperity reported adjusted EPS of $0.22, above the roughly $0.20–$0.21 consensus, while revenue reached $1.651 billion versus estimates of approximately $1.64 billion. Results improved substantially from the prior-year quarter’s $0.20 loss per share. Insperity Q3 earnings report
• Positive Sentiment: Margins and operating efficiency showed progress. Third-quarter gross profit rose 6% to $207 million, gross profit per worksite employee increased 8%, and operating expenses declined 5% to $209 million. Management expects the margin recovery to support fourth-quarter adjusted EBITDA of $24 million to $44 million. Insperity Q4 EBITDA forecast
• Positive Sentiment: Full-year guidance remained supportive. Insperity forecast 2026 adjusted EPS of $1.93 to $2.28 and adjusted EBITDA of $194 million to $214 million. The company also repurchased approximately 131,000 shares for $6 million during the quarter, while CEO Paul Sarvadi has reportedly continued buying shares. Insperity earnings guidance
• Neutral Sentiment: Revenue growth remains modest. Revenue increased about 2% year over year, but average paid worksite employees declined 2% to 307,265. Higher pricing and revenue per employee offset the customer-employee contraction, suggesting that growth is currently dependent more on pricing and productivity than expanding employment levels. Insperity third-quarter results
• Negative Sentiment: GAAP profitability remains weak. Insperity posted a diluted GAAP loss of $0.02 per share and continues to have a negative net margin, even though adjusted earnings were positive. This may limit investor enthusiasm if the anticipated margin recovery does not continue. Why Insperity stock is trading

About Insperity

Insperity, Inc provides human resources and business solutions designed primarily for small and midsize companies in the United States. The company operates as a professional employer organization (PEO), helping clients manage employment-related responsibilities while supporting their day-to-day operations.

Its services include payroll and tax administration, employee benefits, workers’ compensation, human resources guidance, regulatory compliance, recruiting and talent management, performance management, and employee training.